Changes in a currency's exchange rate adjust immediately to insure that
A) official settlements account parity always prevails.
B) net exports always equal zero.
C) interest rate parity always prevails.
D) current account balance equals zero.
E) purchasing power parity always prevails.
C
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What will be an ideal response?
The consumption function will shift with
A) a decrease in real disposable income. B) a change in saving. C) a change in household wealth. D) an increase in real disposable income.
The demand for government regulation of sellers most often originates with
A) consumers. B) economists. C) politicians. D) sellers.
If inflation and unemployment is rising at the same time, then this is most likely the result of a shift
a. downward in the aggregate demand schedule. b. upward in the aggregate demand schedule. c. downward in the aggregate supply schedule. d. upward in the aggregate supply schedule. e. none of the above can explain this